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Published: Wed, July 13, 2016
Economy | By Melissa Porter

Stocks rising in early trading as Dow hits record high


The US benchmark S&P 500 stock index set a record intraday high yesterday as last week's strong monthly US jobs report worked its way into financial markets, and European shares rose as a single candidate emerged to succeed David Cameron as British prime minister.

The Standard & Poors 500, a broad slice of the stock market, rose less than 1 percent in morning trading, but that was enough to push the index above 2134.72 - the intraday high set last May.

On Wall Street, the Dow Jones Industrial Average hit a record and the Nasdaq Composite Index turned positive for the year.

The S&P 500 was up 13.83 points, or 0.65 per cent, at 2,150.99. The Dow Jones added 0.4% to 18,227, while the NASDAQ rallied 0.6% to 4989.

Investors are now turning their focus to corporate results, with analysts projecting a profit decline of 5.7 percent at S&P 500 firms in the three months through June. The Nasdaq Composite advanced 34.18 points, or 0.7% to 5,022.82, erasing its losses in 2016. South Korea's Kospi edged up 0.1 percent to end at 1,991.23 and Hong Kong's Hang Seng added 1.7 percent to finish at 21,224.74.

"The better nonfarm payrolls, the better earnings glimpse that we got today with Alcoa, that says stocks are worth more, and at lower interest rates, investors are willing to pay a higher multiple". Goldman Sachs and Alphabet, the parent company of Google, were up more than 1 percent. USA 30-year yields US30YT= RR were last at 2.149 percent after hitting a record low of 2.089 percent in overnight trading.

Alcoa reported a smaller-than-expected drop in quarterly profit, sending the aluminum producer's shares up 4.7 percent premarket.

"When the market can make new highs and".

ENERGY: Benchmark U.S. crude added $2.04 to close at $46.80 a barrel in NY. In other energy trading in NY, wholesale gasoline rose 1 cent to $1.38 a gallon, heating oil was flat at $1.42 a gallon and natural gas dropped 10 cents, or 3.5 percent, to $2.70 percent.

Investors also expect the Bank of Japan to ease policy further to boost the country's stagnant economy, after Japanese Prime Minister Shinzo Abe's ruling coalition increased its control of the upper house of parliament on Sunday.

Japan's Nikkei 225 Index surged 4% on the news. Just last week the yield on the 10-year Treasury note touched an all-time low. Southwestern Energy jumped 10 percent, adding $1.29 to $14.19.

POKEMON POWER: Shares of Nintendo Co. jumped 12.7% in Tokyo, fueled by the craze for "Pokemon Go", a smartphone game that's become the top grossing app in the iPhone store less than a week after its release in the U.S., Australia and New Zealand. The dollar inched up to 104.79 yen from 102.77 yen. USA crude futures fell 50 cents or 1.1% to reach $44.91 a barrel.

Others stocks on the rise were airlines United Continental and American Airlines, up a respective 2.2 per cent and 3.7 per cent, and travel companies Priceline and Expedia, which rose 1.6 per cent and 1.7 per cent.

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